COVID-19 compels BIR to extend other tax-related filings

Apart from extending the deadline for the filing of Income Tax Returns until May 15, the COVID-19 threat has also compelled the Bureau of Internal Revenue (BIR) to give more time for taxpayers to meet their requirements with the taxman.

The BIR has issued various issuances in light of the enhanced community quarantine in the entire Luzon, effective March 17 to April 13.

Internal Revenue Commissioner Caesar Dulay has signed several Revenue Memorandum Circulars (RMCs) and a Revenue Regulation (RR) in consideration of the current circumstances.

Among the issuances released by the BIR are the following:

• RR No. 5-2020 and as circularized by RMC No. 33-2020 extended the deadline for the availment of the Tax Amnesty on Delinquencies (TAD) from April 23 to May 23, 2020.
• RMC No. 32-2020 extended to April 30, 2020, the deadline for the filing of the Certificate of Residence for Tax Treaty Relief (CORTT) Forms pursuant to Revenue Memorandum Order (RMO) No. 9-2017, without imposition of penalties, to give relief to the deadline of filing of the same for final withholding taxes on dividends, interests, royalties paid on or before March 10, 2020.
• RMC No. 31-2020 granted an extension of 30 days from date of filing to taxpayers required to respond or reply to Notice for Informal Conference (NIC), Preliminary and Final Assessment Notice (PAN and FAN)/Formal Letter of Demand (FLD), supporting documents to support request for re-investigation, Appeals and Request for Reconsideration to the Commissioner on the Final Decision on Disputed Assessment (FDDA), and other similar letters and correspondences with due dates.
• RMC No. 30-2020 and 28-2020 extended the deadline for 30 calendar days the filing/eFiling and payment/ePayment/Remittance of certain tax returns, including the submission of reports and its required attachments for the period of March 20 to April 15, 2020. Income Tax (annual and quarterly), VAT, Percentage Tax, Withholding Tax, Documentary Stamp Tax, Excise Tax and One Time Transactions (ONETT) were among the tax returns included in the extension.
• RMC No. 27-2020 extended the filing of VAT refund applications covering the quarter ending March 31, 2020 to April 30, 2020. Stating that the 90-day period of processing VAT refund claims that maybe received from March 16 to April 14 is suspended and shall resume after the lifting of the Quarantine.

The Department of Finance earlier said the delay in tax filing would reflect a shortfall in collections of around P145 billion, which may have to be covered by additional borrowings by the national government.

“The government is thus appealing to those who are able to file within the deadline or even as early as now to do so through mechanisms that have been made available by the BIR, including online filing and payment platforms," the DOF said.

"These tax payments are crucial for the government to fund extremely urgent social protection and emergency health measures meant to effectively combat COVID-19 as well as to sustain state investments needed to help Filipino families regain stable and reliable sources of income at the soonest possible time," it said. — RSJ, GMA News